Raising capital is vital to the survival and long-term success of startup companies, particularly those with the sorts of business models that tend to attract venture capital (VC) investment. These companies are often unprofitable and therefore need regular infusions of cash to continue funding their operations and growth. All companies raising capital must decide which instrument to issue to their investors. For startups, the choice of instrument varies depending on the company’s stage of development, investor base, and financial position. This Hartung Schroeder Practice Note provides an overview of the lifecycle of a typical startup, focusing on the type of startup that is a likely candidate for venture capital financing, and the types of financial instruments a typical startup issues to raise capital at each of the various stages of its lifecycle.